LOS ANGELES-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that Kilroy Realty Corp. has completed the acquisition of the Sunset Media Center at 6255 Sunset Blvd. for $79 million or $251 per square foot. “Sunset Media Center is located in the heart of an increasingly desirable ‘live, work, and play’ submarket,” explains David Simon, KRC’s executive vice president for the Los Angeles region.
According to Simon, the company acquired an opportunity to “create meaningful long-term value in this property.” He explains that with some “well-targeted improvements to the building’s aesthetics, amenities and energy efficiency, it positions us to service the growing need for entertainment, media and tech-oriented spaces in this submarket.”
The 22-story class A building, which was “paid at a significant discount to replacement cost,” according to a release, is located in the heart of Hollywood. The firm plans an extensive renovation of its lobby, common areas and tenant spaces, which will include energy efficiency upgrades throughout the building.
The office building is currently 87% leased, with in-place rents significantly below current market levels, according to a prepared statement. The acquisition follows KRC’s strategy of seeking out and acquiring value-add properties that cater to the growing technology, media and entertainment sectors.
As GlobeSt.com reported, the firm recently purchased 329 Brannan St. a 35,700-square-foot development site located in the South of Market area near AT&T Park in San Francisco for $18 million; and it recently completed the purchase of two office properties in the Lake Union submarket of Seattle and was set to close on another for $330 million, a purchase that was said to nearly double the West Coast real estate investment trust's office portfolio in high growth submarkets of the Puget Sound Region.
According to Kilroy, with limited inventory and an older office stock, Hollywood continues to be an attractive submarket for value-add opportunities. “Its increased housing options, growth of desirable amenities and closeness to major studios coupled with its proximity to public transportation and freeways make Hollywood a desirable office location for entertainment and media users in the growing tech and ‘digitainment’ sector in Los Angeles,” the firm says in the prepared statement.
While GlobeSt.com couldn’t reach sources involved in time of deadline to confirm who the seller was, a source not involved in the deal tells GlobeSt.com that the seller was CBRE Global Investors. CBRE Global Investors is also making value-add plays in the area. As GlobeSt.com just previously reported, the fund acquired 400 S. Hope St., a 26-floor trophy-quality office building in Downtown Los Angeles, for around $238.4 million, sources confirmed to GlobeSt.com.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
